Indiana Government Center North--Plaque of State Seal beside main entrance-right-hand side
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House Bill 1071 is a bipartisan bill which recently passed out of the House Ways and Means Committee and went on to receive a unanimous "YES" vote on the Indiana House floor. HB1071 represents correction of major civil rights issues existing in our state for the past 29 years. Federal Civil Service retirees have been unfairly forced to pay State and County Income Taxes on their retirement income with an exemption of only $2000. Survivors of Civil Service retirees do not qualify for this exemption. Social Security and Railroad Retirement income is 100% exempt from Indiana state and county income taxes.
The average income from Social Security is $16,000, leaving a difference of $14,000 in taxable income for a Federal Civil Service retiree living in Indiana. This unfair taxation is an extreme hardship. Indiana Civil Service retirees are also being punished by the Government Pension Offset and the Windfall Elimination Provision at the national level. Many Civil Service senior retirees have to make daily sacrifices in their choice of medications, medical treatment and other expenses in order to simply pay their monthly household bills. Some surviving spouses are losing their homes while being forced to pay Indiana taxes on their annuities.
Representatives Ed Clere, Robert Cherry, Eric Koch and Steve Stemler wrote HB1071 asking for equal treatment for these senior citizens and worked alongside National and Active Retired Federal Employees (NARFE) towards the successful passage of this bill in the Indiana House of Representatives. Although Indiana Senators Steele, Grooms, Landske and Mishler are the Senate sponsors, each and every Indiana legislator has an obligation to correct this unfairness by bringing this bill to the floor and voting "YES" to HB1071 during this Senate legislative session.